Policy & Regulation News

Tennessee Shoots Down Medicaid Expansion

By Ryan Mcaskill

In a 7-4 vote, the Tennessee Senate rejected a plan to expand Medicaid coverage in the state.

- Last month, it was announced that the state of Indiana became the 28th state (including Washington D.C.) to adopt the Medicaid program under the Affordable Care Act (ACA). As of February 1, 2015, all eligible beneficiaries have access to affordable high-quality healthcare coverage and through 2016, the expansion is 100 percent federally funded.

“I continue to be encouraged by interest from governors from all across the country who want to bring health care coverage to low-income people in their states by expanding Medicaid. They understand both the economic benefits of Medicaid expansion and the health and financial security it brings to their residents,” said Department of Health and Human Services Secretary Sylvia Burwell. “The Administration will continue to work with governors interested in expanding Medicaid to devise approaches that work for their states while keeping faith with the law’s goals and consumer protections.”

This week, another state made headlines when it comes to Medicaid expansion, but for different reasons. On February 4, a Tennessee Senate panel voted and rejected (by a 7-4 vote) a proposed Medicaid expansion plan created by Governor Bill Haslam.

The plan would help an estimated 280,000 low-income residents in the state qualify for healthcare coverage. Instead of funding Medicaid, the dollars would be used to help these individuals afford private health coverage. This is similar to expansion proposed in Utah and implemented in Indiana.

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  • The vote was held as part of a special session of the state senate, which was held specifically to talk about this issue. Before the vote, it was widely believed that Tennessee would be the next state to adopt Medicaid expansion under the ACA. This would also be even more relevant, because Tennessee is a republican state.

    “Tennessee was seen as potentially the next Republican-led state to expand Medicaid,” a Washington Examiner article explained. “But only three of the 10 Republicans on the committee voted for Haslam’s plan, which he called Insure Tennessee. It would have required participants to help pay for their care through premium and co-pay contributions and set up health reimbursement accounts to help them cover the out-of-pocket costs.”

    According to the Nashville Post, the plan has been supported by a number of provider groups in the state including various hospital executives, the Tennessee Hospital Association, Tennessee Business Roundtable and the Tennessee Medical Association and all spoke in support of the plan before the vote. They see Insure Tennessee as a way to save the state’s rural hospitals and improving the health outcomes for residents and reducing the coverage gap between traditional TennCare and individuals who are able to afford insurance plans on the federal marketplace.